Carnival Corp's stock (NYSE: CCL) gained a new bull on Wall Street, as TD Cowen initiated coverage with a “Buy” rating and a $36 price target, adding further momentum to the stock's upward trajectory. The world's largest cruise line operator is hovering close to its 52-week high, buoyed by record-breaking financial performance, bullish analyst upgrades, and a recovering travel market.
TD Cowen's bullish stance centers on the belief that cruise line stocks, particularly Carnival, are “underappreciated” share gainers within the broader travel sector. The firm highlights the strong value proposition offered by cruises, which they anticipate will drive long-term market share gains.
Their analysis projects a robust 7% annual revenue growth for the cruise industry through 2029, positioning Carnival, as an industry leader, to capitalize on this expansion. The firm also sees significant opportunities for Carnival to boost its margins, further enhancing profitability.
The analyst upgrade is timely, coinciding with Carnival's impressive Q2 2025 results.
The company reported its highest-ever second-quarter operating results, achieving its 2026 financial targets a full 18 months ahead of schedule. This stellar performance included an adjusted return on invested capital exceeding 12.5% and the highest adjusted EBITDA per available lower berth day in nearly two decades.
A key indicator of future demand, customer deposits, reached a record $8.5 billion. Furthermore, cumulative advanced bookings for 2026 are aligning with 2025's record levels, and at historically high prices, demonstrating sustained consumer interest in cruise vacations.
CEO Josh Weinstein attributed this success to the company's exceptional operational execution and confirmed that Carnival remains on track for a strong 4% net yield growth in the second half of the year.